<PAGE> PAGE 1
000 B000000 10/31/97
000 C000000 0000879636
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 VKAC SMALL CAPITALIZATION FUND
001 B000000 811-06421
001 C000000 6306846000
002 A000000 ONE PARKVIEW PLAZA
002 B000000 OAKBROOK TERRACE
002 C000000 IL
002 D010000 60181
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 VAN KAMPEN AMERICAN CAPITAL ASSET MANAGEMENT
008 B000001 A
008 C000001 801-1669
008 D010001 OAKBROOK TERRACE
008 D020001 IL
008 D030001 60181
012 A000001 ACCESS INVESTOR SERVICES, INC.
012 B000001 84-01621
012 C010001 KANSAS CITY
012 C020001 MO
012 C030001 64141
012 C040001 9256
013 A000001 PRICE WATERHOUSE LLP
013 B010001 HOUSTON
013 B020001 TX
013 B030001 77002
014 A000001 MORGAN STANLEY & CO., INCORPORATED
014 B000001 0000733537
014 A000002 DEAN WITTER REYNOLDS, INC.
<PAGE> PAGE 2
014 B000002 0000728181
015 A000001 STATE STREET BANK & TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02110
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 102
019 C000000 VANKAMPENA
020 A000001 SALOMON BROTHERS
020 B000001 13-3082694
020 C000001 107
020 A000002 ITG INC
020 B000002 65-0259182
020 C000002 45
020 A000003 MERRILL LYNCH
020 B000003 13-5674085
020 C000003 4
020 A000004 SMITH BARNEY
020 B000004 13-1912900
020 C000004 3
020 A000005 BERNSTEIN SANFORD C & CO., INC
020 B000005 13-2625874
020 C000005 3
020 A000006 INSTINET CORP
020 B000006 13-2596491
020 C000006 2
021 000000 164
022 A000001 LEHMAN BROTHERS
022 B000001 13-2518466
022 C000001 202148
022 D000001 0
022 A000002 SBC CAPITAL MARKETS INC
022 B000002 13-3498485
022 C000002 202045
022 D000002 0
022 A000003 BA SECURITIES
022 B000003 95-4035346
022 C000003 178835
022 D000003 0
022 A000004 DONALDSON LUFKIN JENRETTE
022 B000004 13-2741729
022 C000004 160820
022 D000004 0
022 A000005 STATE STREET BANK & TRUST
022 B000005 04-1867445
022 C000005 103715
022 D000005 0
022 A000006 PRUDENTIAL SECURITIES
<PAGE> PAGE 3
022 B000006 22-2347336
022 C000006 100220
022 D000006 0
022 A000007 SALOMON BROTHERS
022 B000007 13-3082694
022 C000007 1829
022 D000007 8514
022 A000008 MERRILL LYNCH
022 B000008 13-5674085
022 C000008 914
022 D000008 471
022 A000009 SMITH BARNEY
022 B000009 13-1912900
022 C000009 225
022 D000009 679
022 A000010 PIPER JAFFRAY
022 B000010 41-0953246
022 C000010 432
022 D000010 0
023 C000000 951184
023 D000000 10538
024 000000 Y
025 A000001 LEHMAN GOVERNMENT SECURITIES
025 B000001 -------
025 C000001 D
025 D000001 615
025 A000002 DONALDSON LUFKIN & JENRETTE
025 B000002 13-2347336
025 C000002 E
025 D000002 195
025 A000003 PAINE WEBBER
025 B000003 13-2638166
025 C000003 E
025 D000003 102
025 A000004 LEHMAN BROTHERS HOLDINGS
025 B000004 -------
025 C000004 E
025 D000004 66
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
<PAGE> PAGE 4
027 000000 Y
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 15000
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 68500
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 84254
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 167754
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 N
041 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
<PAGE> PAGE 5
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 N
048 000000 0.000
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 N
053 C000000 N
054 A000000 Y
054 B000000 N
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
<PAGE> PAGE 6
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 Y
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
<PAGE> PAGE 7
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 71631
071 B000000 245360
071 C000000 151429
071 D000000 47
072 A000000 12
072 B000000 211
072 C000000 2078
072 D000000 0
072 E000000 0
072 F000000 0
072 G000000 0
072 H000000 0
072 I000000 15
072 J000000 0
072 K000000 0
072 L000000 12
072 M000000 13
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 28
072 R000000 27
072 S000000 5
072 T000000 0
<PAGE> PAGE 8
072 U000000 12
072 V000000 0
072 W000000 58
072 X000000 170
072 Y000000 1
072 Z000000 2120
072AA000000 59843
072BB000000 0
072CC010000 0
072CC020000 14406
072DD010000 2779
072DD020000 0
072EE000000 11914
073 A010000 0.2130
073 A020000 0.0000
073 B000000 0.9130
073 C000000 0.0000
074 A000000 3
074 B000000 615
074 C000000 0
074 D000000 0
074 E000000 0
074 F000000 57382
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 52
074 M000000 15
074 N000000 58067
074 O000000 0
074 P000000 6
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 51
074 S000000 0
074 T000000 58010
074 U010000 3475
074 U020000 0
074 V010000 16.70
074 V020000 0.00
074 W000000 0.0000
074 X000000 1
074 Y000000 0
075 A000000 0
075 B000000 158446
076 000000 0.00
077 A000000 Y
<PAGE> PAGE 9
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE CO
080 C000000 65000
081 A000000 Y
081 B000000 101
082 A000000 Y
082 B000000 100
083 B000000 0
084 B000000 0
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE DENNIS J MCDONNELL
TITLE PRES, CEO & TRUSTEE
<PAGE>
EXHIBIT 99.77B
PRICE WATERHOUSE LLP [PRICE WATERHOUSE LOGO]
December 5, 1997
To the Shareholders and Board of Trustees of the
Van Kampen American Capital Small Capitalization Fund
In planning and performing our audit of the financial statements of Van Kampen
American Capital Small Capitalization Fund (the Fund) for the year ended
October 31, 1997, we considered its internal control, including control
activities for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs of
control activities. Generally, control activities that are relevant to an
audit pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those control activities include the
safeguarding of assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of any
specific internal control components does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing
their assigned functions. However, we noted no matters involving internal
control, including control activities for safeguarding securities, that we
consider to be material weaknesses as defined above as of October 31, 1997.
This report is intended solely for the information and use of management and
the Board of Trustees of the Fund and the Securities and Exchange Commission.
Price Waterhouse LLP
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 39,464,010
<INVESTMENTS-AT-VALUE> 57,996,872
<RECEIVABLES> 52,358
<ASSETS-OTHER> 14,427
<OTHER-ITEMS-ASSETS> 3,228
<TOTAL-ASSETS> 58,066,885
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 56,646
<TOTAL-LIABILITIES> 56,646
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,534,720
<SHARES-COMMON-STOCK> 3,474,702
<SHARES-COMMON-PRIOR> 14,065,878
<ACCUMULATED-NII-CURRENT> 856,317
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20,086,340
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,532,862
<NET-ASSETS> 58,010,239
<DIVIDEND-INCOME> 2,077,715
<INTEREST-INCOME> 211,190
<OTHER-INCOME> 0
<EXPENSES-NET> (168,577)
<NET-INVESTMENT-INCOME> 2,120,328
<REALIZED-GAINS-CURRENT> 59,842,669
<APPREC-INCREASE-CURRENT> (14,406,399)
<NET-CHANGE-FROM-OPS> 47,556,598
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,779,489)
<DISTRIBUTIONS-OF-GAINS> (11,913,960)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,090,026
<NUMBER-OF-SHARES-REDEEMED> (13,804,554)
<SHARES-REINVESTED> 1,123,352
<NET-CHANGE-IN-ASSETS> (136,197,353)
<ACCUMULATED-NII-PRIOR> 2,414,943
<ACCUMULATED-GAINS-PRIOR> 11,780,941
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 169,477
<AVERAGE-NET-ASSETS> 158,445,934
<PER-SHARE-NAV-BEGIN> 13.807
<PER-SHARE-NII> 0.546
<PER-SHARE-GAIN-APPREC> 3.468
<PER-SHARE-DIVIDEND> (0.213)
<PER-SHARE-DISTRIBUTIONS> (0.913)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 16.695
<EXPENSE-RATIO> 0.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
